Additional Support Tipped For China Shares

(RTTNews) - The China stock market on Wednesday snapped the four-day slide in which it had tumbled almost 75 points or 2.9 percent. The Shanghai Composite Index now rests just above the 2,600-point plateau and it's expected to open higher again on Thursday.

The global forecast for the Asian markets is firm thanks to renewed optimism over the outlook for interest rates. The European markets were flat and the U.S. bourses were sharply higher and the Asian markets figure to follow the latter lead.

The SCI finished sharply higher on Wednesday following gains from the property stocks, financial shares and oil and insurance companies.

For the day, the index advanced 27.06 points or 1.05 percent to finish at 2,601.74 after trading between 2,561.56 and 2,601.96. The Shenzhen Composite Index spiked 18.70 points or 1.40 percent to end at 1,355.38.

Among the actives, Gemdale rose 0.53 percent, while Poly Developments surged 4.46 percent, China Vanke soared 3.73 percent, Industrial and Commercial Bank of China added 0.38 percent, China Construction Bank gained 0.45 percent, Bank of China collected 0.56 percent, China Merchants Bank climbed 1.04 percent, China Life Insurance picked up 0.89 percent, Ping An Insurance advanced 1.05 percent, PetroChina was up 0.66 percent, China Petroleum and Chemical (Sinopec) gathered 1.03 percent and China Shenhua Energy spiked 1.74 percent.

The lead from Wall Street is broadly positive as stocks opened higher Wednesday and the gains for the major averages accelerated in afternoon trade.

The Dow surged 617.70 points or 2.50 percent to 25,366.43, while the NASDAQ soared 208.89 points or 2.95 percent to 7,291.59 and the S&P jumped 61.61 points or 2.30 percent to 2,743.78.

The surge from Wall Street followed dovish remarks from Federal Reserve Chairman Jerome Powell, who said interest rates are still low by historical standards and said rates are currently "just below the broad range of estimates of the level that would be neutral for the economy."

In economic news, the Commerce Department reported a substantial decrease in new home sales in October, although September's total was upwardly revised.

Crude oil futures drifted lower on Wednesday amid concerns about excess supply after data showed a weekly increase in crude stockpiles in the U.S. Crude oil futures for January delivery ended down $1.27 or 2.5 percent at $50.29 a barrel, the lowest settlement in 13 months.
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